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SouthStar Capital Provides $4.5 Million A/R Facility to Support PE-Backed Energy & Utilities Services Company

02-11-2025 11:12 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: ABNewswire

SouthStar Capital Provides $4.5 Million A/R Facility to Support

Image: https://www.abnewswire.com/upload/2025/02/021b09942a43027fe2d3b5299fea1083.jpg

A private equity-backed Energy & Utilities Services company faced significant cash flow challenges due to rapid growth and the need for immediate funding to sustain operations. Approaching $250 million in revenue through multiple entities, the parent company is a leader in large-scale energy and infrastructure projects for Fortune 500 clients. However, milestone-based invoicing with extended payment terms created financial strain during peak demand, requiring additional liquidity to maintain momentum and meet project commitments.

SouthStar Capital provided the company with a customized $4.5 million A/R Facility, addressing its working capital needs while maintaining its relationship with the existing senior lender. This facility carved out specific receivables owed by key debtors, ensuring the company could continue operations, support critical infrastructure initiatives, and expand its project capacity. With this funding in place, the company is well-positioned to take on larger contracts, further reinforcing its leadership in the energy and utilities sector. This transaction highlights SouthStar Capital's ability to deliver flexible financing solutions that empower businesses to overcome financial challenges and capitalize on new opportunities.

About SouthStar:

SouthStar Capital is an asset-based lender dedicated to empowering lower middle-market Private Equity firms and Independent Sponsors with tailored financing solutions that maximize liquidity and fuel portfolio growth. Our innovative approach goes beyond traditional lending, allowing us to structure flexible solutions that align with your business objectives. By focusing on what's possible and looking ahead, we partner with you to seize opportunities, navigate challenges, and drive sustainable success.

Our solutions include: Growth & Working Capital, Acquisition Financing, Existing Senior Lender Carve-Outs, Capped Line of Credit Extensions and Restructurings & DIP Financing.

At SouthStar Capital, we don't just provide capital-we provide partnership, strategy, and financial agility to help you and your portfolio companies thrive.

For more information, visit southstar.com [southstar.com]or contact info@southstar.com

Media Contact
Company Name: SouthStar Capital
Contact Person: Becca Ripley
Email:Send Email [https://www.abnewswire.com/email_contact_us.php?pr=southstar-capital-provides-45-million-ar-facility-to-support-pebacked-energy-utilities-services-company]
Phone: (843) 800-8339
Address:840 Lowcountry Blvd
City: Mount Pleasant
State: SC 29464
Country: United States
Website: http://www.southstarcapital.com

Legal Disclaimer: Information contained on this page is provided by an independent third-party content provider. ABNewswire makes no warranties or responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you are affiliated with this article or have any complaints or copyright issues related to this article and would like it to be removed, please contact retract@swscontact.com



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